On Wednesday, the Panama Canal Authority denied the United States Department of State’s claim that vessels of the U.S. government would be allowed free passage through the canal.
The new development could raise tensions between the two countries as previously President Donald Trump has threatened to regain control of the waterway.
The Panama Canal Authority, an autonomous agency overseen by the Panamanian government, stated that the crossing fees and rights would remain unchanged. The statement came in direct response to U.S. claims.
Early on, the State Department said that an agreement was made with Panama’s government to allow the U.S. government vessels free passage, a move that could save millions of dollars annually.
The Panama Canal has become one of the Trump administration’s geopolitical focal points as President Donald Trump has accused the Panamanians of excessively charging for the use of its passage.
Last month, Trump demanded that Panama either lower the fees for U.S. ships or return the canal to the U.S. Mulino, however, dismissed Trump’s threat to retake the canal.
The U.S. has largely built the Panama Canal and administered it for decades before it was given to Panama in 1999.
